ACT believes the Race Relations Commissioner should go - calling it a political role masquerading as an apolitical, taxpayer-funded public service role.

Commissioner Meng Foon has resigned after he didn't declare that a company he directed received more than $2 million for the provision of emergency housing.

In April it was revealed he and his family made donations to Labour MP Kiri Allan and a National candidate.

ACT Leader David Seymour says this is a huge conflict of interest- but it's impossible for anyone in the Race Relations Commissioner role to be politically neutral.

"The whole idea of a taxpayer funded, supposedly politically neutral agency that acts in a very political sphere inevitably is going to fail at that job, because all people are political."

LISTEN ABOVE

• Race Relations Commissioner Meng Foon resigns over undisclosed conflict of interest
• Heather du Plessis-Allan: Meng Foon might want to think about resigning
• David Seymour condemns Kiri Allan and Meng Foon